RADH, or Radisson Hotel Group AB, is currently considered cheap due to several factors, including historical missed results and distressed ownership by Chinese travel conglomerate HNA. However, the company’s new CEO, Federico Gonzalez, has unveiled a strategic plan to double RADH’s EBITDA by 2022, which is similar to the successful plan he implemented at NH Hotels.
The plan includes rebranding, system improvements, cost savings, and refurbishments. The conservative estimations and cushions in the plan, along with the management team’s track record, make the strategic plan feasible and offer potential upside for investors. Nonetheless, there are risks involved, such as execution challenges, economic downturns, terrorism threats, HNA’s financial distress, and potential self-dealing by the controlling shareholder. In light of these risks, further analysis and evaluation are necessary before making investment decisions.
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